What too many people don't have, thanks to mendacious promises and wishful tinking. (Image via Pixabay.)

"The federal bankruptcy judge created a precedent that said pensions could actually be cut," says [City Journal editor Daniel] DiSalvo. "That was a shock to the unions. (It) called into question these strong legal protections that public pensions have so long enjoyed. They can't just sit back and say, well, we're going to get paid no matter what."

Some politicians hoped that a rising stock market would fund their promises. Many assumed their investments would grow by more than 7 percent per year. Do you make that much on your savings? I don't. Seven percent seems like wishful thinking.

This Stossel notes of the $6 trillion in unfunded pension liabilities at state and local government levels. To their credit, Di Salvo and his colleague Steve Malanga suggest private pension accounts as a long-term solution. I recommend reading the whole thing.